The appreciation of the EGP coincides with a broader global decline in the USD, driven by weaker-than-expected economic indicators from the United States.
The Egyptian pound recorded significant gains against the USD this week, buoyed by a surge in foreign currency inflows, including remittances from Egyptians abroad, rising tourism revenues, and renewed investor appetite for local debt.
The appreciation of the EGP coincides with a broader global decline in the USD, driven by weaker-than-expected economic indicators from the United States.
On Saturday, the exchange rate for the USD fell to approximately EGP 50.08 for buying, with selling prices ranging between EGP 50.18 and EGP 50.22 across most local banks.
Confidence in Egypt’s financial outlook was further reinforced by a strong return of foreign investments into domestic debt markets.
Over the past week, local debt instruments attracted approximately USD 1.1 billion in inflows, largely from Arab investors. In a recent auction by the Ministry of Finance valued at EGP 80 billion, foreign institutions submitted bids totaling EGP 204 billion. The ministry accepted EGP 111.5 billion, reflecting robust demand and growing investor confidence in Egypt’s macroeconomic stability.
The upward movement of the EGP was amplified by recent global pressure on the USD.
On Thursday, the greenback retreated after U.S. economic data signaled a cooling in consumer activity. Retail spending in April slowed amid growing uncertainty about the U.S. economic outlook, raising concerns about the strength of domestic demand.
In a separate report, the U.S. Labor Department announced that the Producer Price Index (PPI) for final demand fell by 0.5% in April, following an upwardly revised flat reading in March. The decline was largely attributed to weakened demand for air travel and hotel accommodations.
Analysts have linked the drop in tourism to former President Donald Trump’s polarizing policy agenda, which included trade protectionism, a crackdown on immigration, controversial remarks likening Canada to a "51st state," and an expressed interest in acquiring Greenland—all of which have dampened international tourism to the U.S.
Earlier in the week, the USD had surged more than 1% following a temporary trade truce between the U.S. and China, which involved a 90-day pause on most tariffs. However, the boost proved temporary as softer economic data and geopolitical unease weighed on the currency.
